Bernanke's crimes.

FED Chairman Bernanke is rumored to be leaving. Mitt Romney has already said he did not want Bernanke reappointed.

The title of this post accuses Bernanke of crimes. Am I justified in referring to Bernanke's actions as crimes, as opposed to being real stupid? I believe so. And here is why: 1. Bernanke's FED imposed  'mark to market rules' in Sep 2008. This made the banks insolvent, elected Obama and started the bailout orgy; 2. Bernanke's FED has been creating insane amounts of money that threatens the end of the US Dollar; 3. The purpose of the FED creating money is to stimulate the banks to increase lending, thus spur on the economy; 4. While the FED has increased the amount of money given to the banks, Bernanke is sabotaging bank lending by having increased reserve requirements and paying the banks for not lending. The money then ends up lifting the stocks even while earnings are decreasing. As soon as the banks are no longer given the risk-free money, it will flood the market creating inflation.

I have posted similar comments before. Why post it again? Because I have a post from Weiss Research that says practically the same thing. Here are exrpts:

"

The Fed Is Telling Banks to Hoard Their Cash!

This means that, instead of creating liquidity and spurring lending, the banks are putting the cash in a big vault for a rainy day.

Just consider that, in the last five years, consumer revolving credit — money being loaned by banks for things like credit cards — has fallen 16% while the Fed has flooded the markets with more than $1.6 trillion in QE money.

Because consumers can’t get credit, the standard supply-and-demand curve is kicking in. After all, we need cash right now to buy businesses ... cars ... and plenty more.

Investors don’t realize this yet. The majority think the Fed’s printing is being injected directly into the economy.

Instead, the financial institutions are fattening their balance sheets ...

And the Fed is exacerbating this problem by paying banks not to lend!

Since 2008, the Fed has been paying banks a fixed interest rate of 0.25% for excess reserves.

While this doesn’t sound like much at a glance, consider that the Federal Funds rate has recently dipped as low as 0.13% and that GDP growth is projected to be as low as 1.75% for 2013.

All of this makes a risk-free 0.25% appealing indeed.

To top it off, the Fed is keeping a tight reserve requirement — which, coupled with the interest on excess reserves — creates incentive for banks not to lend."

Why?


Why?

Because that money is helping the financial institutions buoy the markets.

For example ... in a recent study, Standard & Poor’s showed a quarterly decline in gross earnings of 2.6%. However, when financials were removed ... this number almost doubled to 5%.

And it’s not just here in the United States.

After seven years of increased lending, the euro zone’s consumer credit is beginning a slow decline. Since 2010, credit lending has fallen 6%.

This stagnancy in credit is causing people to double-down on their dollars ... and as a result, we’re seeing an overall slowdown in transactions.

The U.S. Velocity of Money indicator — which measures the speed of transactions to buy and sell products — has fallen 16% since 2007. In Europe, it has fallen 14% since 2007.

All of this is temporarily driving up fiat currencies."

So, Bernanke risks our financial system by printing money, while deliberately sabotaging the effect of the printed money on the economy.